Exchange rate cause of escalating petroleum prices - NPA

The Chief Executive Officer of the National Petroleum Authority (NPA), Dr Mustapha Abdul-Hamid, has assured Ghanaians that factors contributing to volatile petroleum prices have been largely contained.

Speaking at a gathering with selected editors in Accra, he attributed recent price escalations primarily to exchange rate fluctuations while highlighting the Cedi’s current stability as a positive sign for maintaining steady fuel prices.

However, the monthly demand of approximately $400 million required by Bulk Oil Distribution Companies (BDCs) to import petroleum products is also a worry.

To counter the high pricing of Liquified Petroleum Gas (LPG), the NPA has implemented a new tender programme aimed at reducing costs and easing the burden on consumers.

He also appealed to the Bank of Ghana to establish a guaranteed exchange rate for petroleum importers, allowing them to avoid speculative pricing models and bring stability to the sector.

The CEO further discussed the ongoing Cylinder Recirculation Model (CRM) initiative, which provides Liquefied Petroleum Gas Marketing Companies (LPGMCs) with a five-year period to recoup their investments as the model is gradually implemented.

This, he said, will lead to a total ban on gas filling stations in the country

He highlighted that only Ghana and Nigeria currently operate gas filling stations in West Africa, positioning the CRM as a more efficient solution for the LPG sector.

Encouraging bottling companies to promote awareness of CRM collection points, he explained that currently, 30 percent of Ghana’s LPG supply is sourced from Atuabo Gas Company, while the remaining 70 percent is imported from Europe.